Marathon and Real Estate!

A friend of mine is training for a marathon in a few weeks and I have been amazed at what it takes to train for the marathon.   It is a daily routine of packing meals for the day, having enough water and getting those precious miles in.  Little aches and pains have to be dealt with and for the most part, pushed to the back of the mind. 

It is a 20 week training regimen culminated with a 20 mile run with 3 weeks before the race.  This regimen does not necessarily prepare you to win the race; rather it is designed for you to SURVIVE the race!

What do you do with your real estate to survive the changing market?  Do you train every day?  As a real estate investor and real estate salesperson, I am constantly evaluating the market, marketing techniques, creative financing options and anything that will help me to maximize the value of my property and the value of my business.

I have learned a lot from my marathon friend.  You see a marathon is not a sprint where you go with all out effort.  You must pace yourself.  Your long term goal in real estate is to pace yourself for the long haul.  Many investors in the past 5 years, got themselves into trouble by thinking they could buy a property and then flip it quickly and make an easy profit.  I have participated in two of those deal and did very well, but I invested within my means.

This is the key to running the marathon as well.  You must pace yourself and not start out of the gate too quickly.  If you do, this will cause oxygen debt and you will be off your pace for the entire race.  In real estate investments, keep a steady but controlled pace.  Do not buy something that is out of your means to cover the mortgage.  Always, buy something where the going market rent will be able to cover your mortgage in case of an emergency.

If you are interested in learning more about my investment portolio and other investment opportunities, go to www.MichaelDunn.com or send me an e-mail Mike@MichaelDunn.com

Happy investing.

Mike

Posted: October 5th, 2008 under Hot Tips, Real Estate News.
Comments: none

Paul Newman, September 27th and Real Estate!

Paul Newman, an amazing man and contributor to the well being of our society, passed away yesterday.  For many of us, we remember him as an outstanding actor, but his real legacy will be a devoted family man, a husband of 53 . . . yes FIFTY THREE, years to his wife Joanne Woodward and his tremendous generosity and compassion for children with terminal diseases.

WOW!  What a legacy he left behind.  I hope that all of us will take a small piece of his character and pass it on; the world will be the better for it.

Today I am sitting in a restaurant in Coto de Caza, California after showing some properties to one of my buyers.  It is about 92 degrees with clear skies.  Just mentioning those two things, should make you want to move here an buy real estate.

Go to www.NorthwoodPointeIrvine.com and www.ThePelicanEstates.com and www.MichaelDunn.comto search some tremendous deals that will cash flow with 20% down.

Today’s blog is short, but it still states the truth - look to buy real estate where you can put 20% down and still get cash flow.

Happy investing.

Mike

Posted: September 27th, 2008 under Hot Tips, Real Estate News.
Comments: none

Presidential Debate and Real Estate!

Well, folks, here we go . . . the home stretch of the 2008 Presidential Campaign.  Are you ready? I am!

The reason I am ready is because I want to see who will step up and say what needs to be said.  We need someone to take responsibility instead of blaming things on others. Let me give you an example:

I was a baseball pitcher in high school, college and some travelling semi-pro teams and whenever I had a bad game, I took responsibility.  If I had a good game, I was relatively humble because I knew my teammates helped me.  When it was my turn to pitch, I came prepared - I would do my running , stretching and bullpen session religiously - you see, I did not want my preparation to be an excuse to lose the game.  I always controlled the things I could control.

In this race for the White House, the candidates are just putting blame on each-other instead of suggesting some sound economic policies.  In fact, both candidates have been members of the congress the past 8 years and are only now saying they will do something.  They were both in the middle of the debacle - take the blame and start moving on.

I love how these candidates take credit when things are good and place blame on others when things are bad - it must be human nature.  For once, I would love for someone to say, “I $#@%!& up and this is what we need to do to make things right!”.

I do not think “they” make people like that anymore; at least not on this planet.

So here is what I think, all of us should look at ourselves as the government.  How should we ensure financial success?  Again, I ask you, are you ready?  Remember, in order to achieve change, you must be ready.  I have been ready for the past 10 years and will continue my path . . .

Here is the solution: If we all buy real estate investment property we will ensure our success.  First, we will have a tenant who cannot afford to buy a home because of the tightened lender restriction, rent one of our properties.  The rent they will pay will cover the mortgage we pay to the bank.  The bank will be happy because they will have a steady income.  We will be happy because we have our expenses covered and our homes will appreciate at a nice 7% increase very year.  The tenant will be happy because they will be building up their credit scores.

I know, I know, you are saying that this is not “sexy” enough.  Yes, buying mortgage notes on Wall Street is much more “sexy” or buying stocks on margin is the “creme de la creme” of excitement.  But the aforementioned system REALLY WORKS!!!  This is quite a change from “sexy” and “broke”.

So what do you say?  Shall we just do our own investing and tell Wall Street to do their own?  It has worked for me.

In effect, you own your own company.  You have your own employees and you are in charge of the balance sheets.  I think the employees of Enron wished they had done the same.

Go to www.MichaelDunn.com and click the search button because, your future is in your mouse and the mouse will always go to the best HOUSE!

Happy investing.

Mike

Posted: September 26th, 2008 under Hot Tips, Real Estate News.
Comments: none

Bailout and Real Estate!

$700 billion . . . $700 BILLION?  Holy Astronomical Figures, Batman!

Well it is time for another bailout.  I know what you are thinking . . . but I pay my mortgage on time and I am going to have to pay for someone who has not been responsible?  Yes, that is the essence of a society.  We pay our taxes so that others can go fight our wars, we pay our taxes so that our parents will be able to avoid worrying about money and we pay our taxes so that the fellow citizen who has fallen on hard times, will be able to once again rise and seek their potential.

There was a lot of fraud the past few years and we are paying a price for it.  Much like having a car accident and seeing insurance rates rise, this bailout is due to our greed and hope that the limo ride would last much longer than anticipated.

So here is the solution:

1. Start eating healthy foods

2. Start getting up early every morning and exercising

3. Live within your means

4. Buy any real estate you can afford and rent it out.

This last bit of advice is critical because in the next 12 months there will be a rise in rents throughout the entire country.  Find a property you can have a tenant cover for you and look at a 10 year plan.  Forget about the immediate gratification of materials and enjoy the immediate gratification of your health and let the real estate take care of itself.

What is 5% of $3M?  Yes, you are correct, $150,000.  I have a friend who owns $3M in real estate and it only costs her $1,150 per month to carry it.  If her real estate goes up 1% per year, she is getting $1,350 positive cash flow every month.  If it goes up 5% per year, it creates $11,350 in positive cash flow.  In the history of real estate since 1950, real estate has averaged an increase of 10% per year, so 5% is conservative and 1% is very pessimistic.  In the meantime, she earns $20,000 per month in income and is socking it away for other investment properties and retirement.

Do not take the rich quick road for it will distract you from the real riches; the long-term riches.  Focus on the top 3 points and the 4th, will take care of you when the other 3 leave you.

Call me for more details at 949-533-2581.

Happy investing.

Mike

Posted: September 25th, 2008 under Hot Tips, Real Estate News.
Comments: none

Palin, Popularity and Real Estate!

The recent addition of Sarah Palin to the Republican ticket’s race for the White House has some people tremendously excited.  The chance that a female may be the first vice-president of the United States is very exciting.  However, you need to stay away from the “sexy” part of politics and look at the bottom line!

What you need to get even more excited about is the opportunities coming available in real estate.  You see all the saving that you and your family have done for the past 10 years is now going to pay off.

The people who have not saved are now hurting and it is the fruition of the classic tale of the turtle and the hare or was it the ant and the grasshopper?  Not sure but the point has something to do with saving for a rainy day and when the rain comes, the exposed areas drift away and lose their value.  But that rainy area will eventually dry up and seeds will land an blossom into fruitful rewards. 

Those seeds are now being released in the form of bank owned properties.  See my explanation a few blogs back.

You need to be ready.  remember the old axiom: “When there is blood in the streets, buy real estate!”.  Check out these incredible deals in Orange County, California:

4 beds, 2.5 baths, 2,200 square feet $699,000 (the peak was selling for $900,000)

5 beds, 4.5 baths, 4,200 square feet $1,725,000 (the peak was selling for $2,050,000)

2 beds, 2.5 baths, 1400 square feet $415,000 (the peak was selling for $585,000)

Call me for more info at 949-533-2581.

Happy investing.

Mike

Posted: September 24th, 2008 under Hot Tips, Real Estate News.
Comments: none

Credit Crisis and Real Estate!

What do you think the reason for the current credit crisis is?  Yes, send me an e-mail and give me your opinion.

Is it because the Democratic Congress did not keep an eye on things?  Is it because The Republican President did not use his leadership to keep us safe?   Perhaps a combination of both, but the main reason is us.  Yes, us . . . the United States of America.  We the people became greedy.

We the People who were so anxious to make millions in real estate, gambled - on margin - that the market would carry us to the riches the marketing companies said we “deserve”.  Yes, we bought into it and for those of us who got in above our heads, it is time to pay.

What happened to just staying balanced by pursuing our goals, getting our daily exercise and waiting for our real estate to slowly grow until the time we really “need” the money.  You see, if you have your health and you smile easily, you do not need the money.

Now, you do need to make wise choices if you want the real estate reward in later years and it starts right here.  Most of us do not live in Orange County, California and your average price of real estate is much less than here, but there are still major opportunities to get sound real estate deals.

Go to www.MichaelDunn.com to search for some incredible deals and please send me an e-mail to look at my portfolio and see how you must plan for the future, but enjoy the present.

Happy investing.

Mike

Posted: September 18th, 2008 under Hot Tips, Real Estate News.
Comments: none

Yahoo, Real Estate and Mike’s Birthday!

Well, it has been 3 weeks since my birthday and the real estate market is still here!  Remember, that is the key . . . real estate is still here; making investors money every month and keeping a roof over many families before the winter sets in.  Be grateful for what you have, for there is always someone who has less.

Now let’s get down to business . . . I have the best real estate deals in the entire country and here is why:

1. I have access to bank owned listings which will garner cash flow and carry you through the-next upswing cycle in real estate.  This is imperatively important, yes, imperatively important.

2. Southern California has avoided Hurricanes, Gustaf, Ike and the other one.  There have been no tornadoes and no flooding.  This is probably the best reason to buy real estate.

3.  Here is the other reason, prices have come down enough to justify positive cash flow on properties with 20% down instead of 40% down.

Go to www.MichaelDunn.com to search for some tremendous deals.

Happy investing.

Mike

Posted: September 17th, 2008 under Hot Tips, Real Estate News.
Comments: none

Biden, Obama and Real Estate!

Well now that summer is drawing to an end and the presidential election is about to heat up, I am still here talking about the importance of real estate.  What does real estate have to do with the presidential election?  It is the presidential election.

You see traditionally whomever wins the presidential election, adds to his and her real estate portfolio.  After all, the race is all about THE WHITE HOUSE!

Real estate is the greatest investment around and this holds especially true for the Irvine Ranch in Orange County, California.  Allow me to list the reasons:

1. Weather - Orange County has approximately 300 days of sunshine and mild temperatures each year.  Less than 10 reported tornadoes in the past 30 years.  Texas, as a comparison, averages 10 each summer.

2. Convenience - Orange County is within 1 hour of major airports, the beaches, and mountains.  During winter, one can surf in the morning and go skiing in the afternoon.

3. Real estate values - In Orange County, historically, real estate values have gone up higher than any other areas and when the market has dipped, prices have not gone down as much as other areas.

So if you want to join the “elite” buy something in Orange County and go to www.MichaelDunn.com to search for the best deals.

Happy investing.

Mike

Posted: August 24th, 2008 under Hot Tips, Real Estate News.
Comments: none

Summer Vacation and Real Estate!

Well it is that time of year again, nearing the end of summer and getting those summer vacations in!  I am leaving on a cruise for Mexico this week and always look forward to getting to the high seas.

My stepfather was a Merchant Mariner at the age of 17 and sailed off from San Francisco to Australia and all points in between.  he wrote a book about it and it was one of the most exciting adventures I ever read . . . and he lived it.

Wha does this have to do with real estate?  EVERYTHING!  You see when you sail the ocean, you think of the vastness of our planet and the rarity of land.  yes, the rarity of land.  Do you know why?  Because at sea, you realize that the land portion of the Earth is less than a third of the Earth’s surface.  67% is covered by water.

In the world of real estate, this means that with less land than water, the land value goes up.  Stay tuned for my next blog from the ship, but in the meantime, let me leave you with this  . . . what has a solid foundation yet moves up?

Happy vacation and investing.

Mike

Posted: August 8th, 2008 under Hot Tips, Real Estate News.
Comments: none

Real Estate and The Irvine Ranch!

The real estate market has been sluggish and in some case, downright bleak.  However, in one specific region the market is humming along and maintaining it value.  Down Orange County, California way on the Irvine Ranch.

The center of the Irvine Ranch is Irvine.  Named after James Irvine who discovered this amazing land in the mid 1800s.  Irivne was recently named the nations 4th safest city and is one of the “greenest” cities in the nation.

I have lived on the Ranch off and on for a total of 25 years and it offers everything you could possibly want.  Trust me when I say this because I have also lived in Texas, Europe and the Middle East.  While I enjoyed all those places, I enjoy Irvine because it offers certainty.  In today’s’ world, certainty is a precious commodity.

By certainty, I am also speaking of my industry and passion, real estate.  Yes, when you live on the Irvine Ranch, you can be certain that your property will rise higher then 99% of any other area in the world.  You can also have certainty that when the market dips, it will dip less than other areas.

If you afford it, buy it.  If you cannot afford it, leave it.  Those are wise words spoken by some of the richest investors in the world.  Live within your means and you will succeed.

Send me an e-mail to Mike@MichaelDunn.comor call me at 949-533-2581, and I will give you some insight and a list of some incredible investment opportunities.

Happy investing.

Mike

Posted: July 30th, 2008 under Hot Tips, Real Estate News.
Comments: none